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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Fair Value of Derivative Instruments

The following table summarizes the fair value and related notional amounts of derivative instruments, as of the dates indicated:

 

     December 31, 2018      December 31, 2017  
     Derivative assets      Derivative liabilities      Derivative assets      Derivative liabilities  

(in millions)

    Fair value      Notional      Fair value      Notional      Fair value      Notional1      Fair value      Notional1  

Derivatives designated and qualifying as hedging instruments

    $ 129      $ 1,459      $ 46      $ 794      $ 60      $ 654      $ 93      $ 1,127  

Derivatives not designated as hedging instruments:

                        

Interest rate contracts

    $ —        $ 446      $ 1      $ 42      $ 25      $ 2,131      $ 73      $ 2,336  

Equity contracts

      438        19,984        —          641        1,070        15,738        —          2,081  

Other derivative contracts

      —          —          13        —          —          —          12        2  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivatives1,2

    $ 567      $ 21,889      $ 60      $ 1,477      $ 1,155      $ 18,523      $ 178      $ 5,546  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

1 

Fair value balance excludes immaterial accrued interest on derivative assets and liabilities for December 31, 2018 and 2017.
2 

Excludes embedded derivatives included in future policy benefits and claims on the consolidated balance sheets of $627 million and $984 million as of December 31, 2018 and December 31, 2017, respectively.
Summary of Realized Gains and Losses for Derivative Instruments

The following table summarizes gains and losses for derivative instruments recognized in net realized investment gains and losses in the consolidated statements of operations, for the years ended:

 

     December 31,  

(in millions)

    2018     2017     2016  

Derivatives instruments

       

Interest rate contracts

    $ 30     $ (9 )    $ 13  

Equity contracts

      (329 )      (25 )      (81 ) 

Other derivative contracts

      (8 )      2       8  

Net interest settlements

      (2 )      (9 )      (2 ) 
  

 

 

    

 

 

    

 

 

  

Total derivative losses

    $ (309 )    $ (41 )    $ (62 ) 

Change in embedded derivative liabilities and related fees1

      —         32       20  
  

 

 

    

 

 

    

 

 

  

Net realized derivative losses

    $ (309 )    $ (9 )    $ (42 ) 
  

 

 

    

 

 

    

 

 

  

 

1 

Excludes the change in embedded derivatives recognized in interest credited to policyholder account values in the consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 of $(380) million, $646 million and $276 million, respectively.